290,000 public sector workers are reportedly set to receive a 2% pay rise.
According to the
, the pay sanctions are expected to be approved before the Dáil breaks for the summer.The increases are reportedly just the first in a round of pay hikes for public sector workers.
The paper is also reporting that the government are planning a package of spending measures and tax cuts worth €1.5 bn.
Sinn Féin has slammed the possible increase as "auction politics".
Senator David Cullinane said wages need to be increased for low paid and middle income workers.
"That's exactly what got us into the mess that we're in in the first place," he said.
"We want to see a fair recovery, where those who have borne the brunt of the last seven or eight years of austerity are the people who get a lift first - and that's low-paid and middle-income earners."